5. Florida
"Florida has a lot going for it," Kerrigan says. "Its big edge comes from having no personal, capital gain or death taxes." In recent years Florida's growing consumer base has drawn hordes of startups and other small firms. "From a policy perspective the state has dealt with its growth very well," Kerrigan adds. Florida has seen one of the largest percentage increase in government spending of any state over the past five years. Yet unemployment taxes remain among the lowest in the country, and there are no personal income or capital gains taxes.
